Ryanair's shares closed 1.8% higher, after gaining as much as 4.2%, as Europe’s largest LCC reported a quarterly profit that exceeded analysts’ estimates. The LCC also forecastfares may rise by as much as 15% in the current period (after increasing 5% in the Jun-2010 quarter).

Net and operating profits in the quarter to Jun-2010, however, declined 23% and 24%, respectively, on a year-on-year basis, with the carrier being “adversely impacted” by the volcanic ash cloud crisis.

Among the non-listed European LCC, Flybe signed a contract with Embraer yesterday, covering the purchase of 35 E175 jets. The agreement also includes 65 options and 40 purchase rights, giving the order a potential for 140 E175s. The total value of the contract, at list price, is USD1.3 billion and could reach USD5.0 billion, if all options and purchase rights are exercised. The first aircraft is scheduled for delivery in 2H2011.

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